Tesla, Mercedes-Benz and Audi lost brand value over the past year despite heavy spending on software, electrification and autonomy, Interbrand’s Best Global Brands 2026 report found.

The decline suggests the automakers’ technology investment isn’t building customer loyalty, while challengers such as BYD, Hyundai and Kia are using design, price and accessibility to win consumers.

Tesla’s brand value fell 37.8 percent to $18.3 billion, and its ranking dropped 25 spots to 50th, according to the brand consultancy’s report. Tesla products such as the Semi, Optimus, Cybercab and Roadster have generated attention, but that has not consistently translated into commercial traction or brand strength, the report said.

“Attention alone is not enough,” the report said. “When expectations outpace delivery and adoption, the gap between promise and reality can erode trust.”

The index measures the economic profit generated by a brand, the extent to which it influences purchase decisions, and its ability to create loyalty and sustain future demand.

Technology companies led the overall ranking. Apple placed first, up 9 percent to $514.6 billion, followed by Microsoft, up 14 percent to $443.7 billion, and Google, up 23 percent to $389.3 billion.

Toyota highest-ranked auto brand, followed by Mercedes

In ninth place, Toyota remained the highest-ranked automotive brand despite a 20 percent decline in value to $59.4 billion. Mercedes, in 20th position, fell 19 percent to $40.8 billion. BMW was ranked 22nd with a brand value of $38.4 billion, down 18 percent.

Among automakers that gained brand value, Hyundai, in 29th position, rose 1.6 percent to $25 billion; Kia, in 87th position, increased 2.7 percent to $8.8 billion; and BYD, in 89th position, saw its brand value rose 4.5 percent to $8.5 billion.

Other automotive rankings were:

  • Honda at No. 45, with a brand value of $19.4 billion, down 22 percent.
  • Ferrari at No. 51, with a brand value of $17.7 billion, up 15 percent.
  • Audi at No. 65, with a brand value of $12.4 billion, down 20 percent.
  • Porsche at No. 66, with a brand value of $12.4 billion, down 17 percent
  • Volkswagen at No. 71, with a brand value of $11.6 billion, down 23 percent.
  • Nissan at 100, with a brand value $7.2 billion, down 23 percent.

Overall, the automotive sector lost nearly $57 billion in brand value in the 2026 ranking as automakers struggled to convert innovation into value, the report said.

The challenge for legacy automakers is not just developing new technology but differentiating their brands while transforming their businesses, the report said.

“Continued investment in electrification and digital transformation across the sector has created a challenge of differentiation, with increasingly similar propositions making it harder for brands to stand apart,” the report said.

“Challenger brands have benefited from clever articulations of electrification, accessibility, design and technology,” the report said.